Company car policy: a ready 12-clause template

Why you need a written policy, even with 3 cars

Most company car disputes don't start with bad intent but with no written agreement: an employee used the car at the weekend because nobody said no, a speeding fine arrived two months later and nobody knows who was driving, or a scratch showed up at return with no photo from before. A written policy settles these questions before they come up, treats every employee the same, and protects the employee too: they know exactly what's expected of them and what isn't.

A practical rule: one to two pages, in plain language, with no legal terms the driver won't understand. A long policy is a policy nobody reads.

Read next: How to manage a small fleet in 8 steps

Before you write: 4 decisions management must make

The template below has options in square brackets. Settle these four first, because the other clauses follow from them:

Company car policy template (12 clauses)

1. Purpose and scope: This policy applies to every car the company owns or leases and to every employee who drives one. Its aim: driver safety, well-kept cars and clear responsibilities.
2. Who may drive: Only the employee assigned the car in writing may drive it, holding a valid licence of the right class and a valid driving authorisation where the law requires one. The driver lets nobody else drive, even for a short distance, and tells management at once if their licence expires or is suspended.
3. Handover and return: The car is handed over and returned with a signed handover form: odometer, fuel level, visible damage with photos, and accessories. The driver inspects the car on receipt; any issue not written down is treated as not there.
4. Personal use: [Not allowed: the car is for work only] or [Allowed within {city} outside working hours, up to {N} km a month; extra km charged at {X} per km] or [Allowed without a limit]. No intercity or cross-border trips without written permission.
5. Fuel: Every fill-up is logged the same day: date, odometer reading, litres, amount and a receipt photo. [The company pays work fuel only] or [The company pays all fuel]. Only the car's specified fuel grade is used. Fill-ups without a receipt are not reimbursed.
6. Odometer: The driver updates the odometer reading at least weekly and at every fill-up. Any odometer fault is reported the same day.
7. Servicing and daily care: The driver watches dashboard warnings, checks tyre pressure, oil and coolant weekly, and keeps the car clean. Management sets service dates; no service or repair is charged to the company without approval from {responsible person}.
8. Traffic fines: Fines caused by driving (speeding, signals, wrong parking, phone use) are the responsibility of whoever was driving at the time, per the assignment record. [The driver pays them directly] or [the company pays and deducts as the law allows]. Administrative fines caused by the company renewing late are the company's. The driver reports any fine they know of within {48 hours}.
9. Accidents and breakdowns: After any accident: people's safety first, then report to your country's accident authority and follow its procedure, then call {contact number}, then photograph the scene and the cars. No settlement with the other party without company approval. On a breakdown: don't keep driving if a red temperature or oil-pressure warning appears.
10. Safety and conduct: No handheld phone use while driving, seatbelts for every passenger, no smoking in the car [or: allowed]. No passengers from outside work [without permission]. Never leave the car unlocked or running unattended.
11. Leave and leaving the job: Before long leave or at the end of employment the car is returned with the handover form, with a {full tank / same level as received}, keys, papers and accessories. Fines and damage are reviewed before final settlement.
12. Review and signature: This policy is reviewed every year. The employee's signature means they have read, understood and accept it. Employee name · Employee no. (internal) · Car / plate · Date · Signature For the company: name · title · signature

How to make the policy stick

1. Gather the drivers, walk through the clauses in 15 minutes, and take questions before anyone signs.
2. Sign a copy per employee and keep it in their file with the handover form for their car.
3. Make logging easier than skipping it: fill-ups and odometer from the phone in a minute, not a paper sheet handed in at month end.
4. Review three things monthly: upcoming deadlines, fill-ups without receipts, and the highest-consumption car.
5. Apply the clauses to everyone the same way, managers included. The first exception ends the policy.

Read next: Company car driving authorisation and fines · Signs of fuel fraud in company cars

How Sayarti+ Business helps you apply it

Clauses 2 and 8: every car is assigned to one or more drivers in the app, and every entry records who logged it, so you know who was responsible for the car on any day. Clause 5: drivers log fill-ups from their phones with a receipt photo, even offline. Clauses 6 and 7: service reminders by km or date go to the owner, managers and the car's driver. And an alert when a car uses more fuel than its average helps the monthly review. Drivers see only their own cars, never other cars' costs.

Print the policy

Sayarti+ team

We write practical guides on car costs, maintenance and company cars. Every number has a source.

From Sayarti+ — sayartiplus.com · Not affiliated with any government entity